USD/NOK rises after strong Norway inflation data; dead cat bounce?

The USD/NOK rose by more than 1% today even after upbeat inflation data from Norway. The pair is trading at 8.5133, which is a few pips above Friday’s low of 8.3710.  Norway’s inflation rises In its most recent interest rate decision, the Norges Bank committed to increasing interest rates earlier than predicted. It attributed this to the relatively strong economy.  The inflation numbers released today could push the bank to move even earlier. According to the Norwegian Bureau of Statistics, the overall consumer price index in the country increased by 0.4% in November.  It had dropped by 0.4% in October.